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When is the best time to invest into an asset category?

Picking the right investment at the right time could be said to be a tricky business.

Everyone wants to know that they are doing the right thing before they do it – and for professional advisers this is especially pronounced by their regulatory obligations.

Therefore it may seem a tad risky to be looking at distressed overseas property because as we all know overseas property seems to have been at the forefront of some of the most appalling investment mishaps of the past few years. It would not be surprising therefore if advisers were completely immune to any consideration about any overseas property investment.

However – as usual – the troubles of a particular sector or category, here we are talking about overseas property as the asset class, also present opportunities. We think this is now the case with some narrow areas within the sector and specifically this focuses, for us, on the US.

We are adamant that the US property market is throwing up some very special investment opportunities and this is why we have launched a fund into the UK market to provide Advisers with an opportunity that they can in turn present to their clients. Arguably the whole of the US market is now a solid investment sector, but we have particularly focused into the distressed part of the market and in geographic terms into Detroit.

This is not a question of fortune favours the brave. We believe the facts and background evidence of what is occurring here present a perfectly sensible, measured investment proposition for any investor looking to get a diversified asset class within their portfolio.

Too many times opportunities may be missed because a broad brush is applied to an investment class. "Overseas Property? Forget it, it's too much trouble" is perhaps not an uncommon response in the current climate. We understand this because no-one wants to advise their clients into a fund or investment that is going to flop or run into trouble. However the broad brush may also brush over the opportunity as well.

And in this particular case we think that the opportunity, once seen, understood and all the facts and evidence are considered, will alter the thinking. Yes, overseas property may be a high risk, much-troubled asset class as a whole, but not when it comes to distressed property in Detroit. We think the investment case here is powerful, not just with the upside potential, but crucially with the risk management that we can provide with our approach.

Often the best times to invest are when an asset class or sector has fallen out of favour, especially if one can find a bit of the sector which is going to buck the trends or has unique reasons why it will act in its own way based on its own fundamental reasons.

The properties the fund is targeting have exceptionally high yields, with great cash-flow attached and the management team can negotiate fabulous prices due to the nature of the foreclosure position.

We think this is demonstrably the case with property in Detroit and we would urge you – at the very least – to investigate and discover the reasons for yourself.

If you want to find out more about the Temple Rock fund that provides this opportunity then please contact us uk@temple-rock.com or visit or web site www.temple-rock.com

 

[Sponsored article by Temple Rock Fund PCC Ltd]

 

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Author: IFA Life Sponsored Post
Posted: Friday, May 24, 2013 | 10:31:01 AM


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Comments

11 January 2014 | 7:05:12 PM  Adeline Luther wrote:
One has to really understand the dynamics of the sector in which you choose to invest. Listen to the experts, read research reports, do your own homework. The risks and the rewards both accrue to you. Do not hold somebody else responsible for it.
11 January 2014 | 7:04:54 PM  Adeline Luther wrote:
One has to really understand the dynamics of the sector in which you choose to invest. Listen to the experts, read research reports, do your own homework. The risks and the rewards both accrue to you. Do not hold somebody else responsible for it.
11 October 2013 | 6:48:56 PM  Kimmy  Burguess wrote:
Better you invest is the better return that you get back so decision is really important the better your decision are more accurate will be your result and really your article is helpful in that case keep posting such good content have a great day ahead
19 July 2013 | 1:02:30 PM  Duncan Orr wrote:
Looks an interesting proposition, see http://www.telegraph.co.uk/news/worldnews/northamerica/usa/10190379/Detroit-Where-did-it-all-go-wrong.html

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